Posted on 27 May 2009
Egg Banking plc
The Financial Services Authority (FSA) has fined Egg Banking plc £721,000 for serious failings in its sales of credit card payment protection insurance (PPI).
The FSA found failings in approximately 40 per cent of telephone sales of credit card PPI made by Egg between January 2005 and December 2007. Egg sold PPI either when receiving a customer services call, or when making a sales call to a new customer. When Egg customers said they did not want PPI on their credit cards, the firm directed its sales staff to use techniques to persuade the customer to take the insurance - called ‘objection handling’.
These techniques included over-emphasising the positive features of the PPI, or telling the customer they could take the PPI for a free period and cancel it later if they did not want it. In some cases, even when the customer did not consent, PPI was applied to their credit card anyway.
The FSA found that:
“Egg used inappropriate sales techniques to try to persuade customers to buy payment protection insurance on their credit card even when they asserted they did not want the cover. All firms must ensure that customers are treated fairly when selling PPI and if a customer does not want PPI, they should not be pressured into taking it.… Egg stopped telephone sales of credit card PPI in December 2007, and has agreed to write to customers and pay a full refund plus interest where appropriate. Egg is likely to pay substantial compensation as a result of this exercise.”
For more information see the FSA Web site: more information please.
http://www.fsa.gov.uk/pages/Library/Communication/PR/2008/149.shtml
CLAIM NOW
If you answer Yes to one or more of the following questions you may have a claim for PPI refund -
- Egg failed to ask me about any pre-existing medical conditions when I took out a PPI policy
- Egg failed to ask if I was or was shortly due to become self-employed when I took out the PPI policy
- Egg failed to ask if I was retired or very close to retirement ages when I took out the PPI policy
- Egg failed to ask if I was not employed (including student) when I took out the PPI policy
- Egg failed to ask if I was a public services employee when I took out the PPI policy
- Egg failed to ask if I had other protection policies in place when I took out this loan
- Egg failed to advise me that I did not need the PPI policy as I could have repaid the loan/outstanding balance using my savings
- Egg failed told me that the PPI policy was compulsory and not optional
- Egg failed to ask if I was not aware that the PPI policy was optional
- Egg failed advise me that I would get a better interest rate or the PPI would cost much less if I took the PPI policy out with another insurer
- Egg did not make me aware of the cost of the premiums on the PPI policy
- Egg did not make me aware that the PPI policy cost would be added to the loan and I would pay interest on the cost
- Egg did not make me aware that I had taken out the PPI policy when I took out the loan
- Egg did not make me aware that I could purchase alternative PPI policies with other providers when I took out the loan
- Egg did not make me aware that the PPI policy did not cover the life of the loan
If you think you have a claim take our 1 minute test by clicking on the link below.
On line Self Assessment Form - Click Here
We operate a NO WIN NO FEE policy so you have nothing to lose to refund your PPI.
R James Hutcheon Solicitors
The Heath Business & Technology Park
Runcorn
Cheshire
WA7 4QX
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Tags: egg | egg ppi claim | egg ppi refund | ppi refunds
